Question

Cary Inc. reported net credit sales of $300,000 for the current year. The unadjusted credit balance in its Allowance for Doubtful Accounts is $500. The company has experienced bad debt losses of 1% of credit sales in prior periods. Using the percentage of credit sales method, what amount should the company record as an estimate of Bad Debt Expense?

A) $2,500

B) $3,000

C) $2,980

D) $3,200

Answer

This answer is hidden. It contains 211 characters.